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1860-'61.] Document No. 13, 2
its capital stock, and also hold real and personal estate to
the amount of three millions of dollars, and yet, never pay
one dollar of specie except at its own option, to justify this
unheard of expansion, the whole being based on the bonds
of North Carolina. Experience has taught, by sad experi-ment,
many of the Northwestern States in 1836-'3V, that
note holders of banks based simply onState stocks, rely on
a delusive hope in the hour of financial difficulties, and
which results only in loss to them, and embarrassment to
the State.
Why is this? The charter provides, that if the bank re-fuses
to redeem its notes in specie, the holder has to notify
the Treasurer of each failure in his office. Then the Treasur-er,
after the notes have been protested, must notify the cash-ier
or president of the bank to pay the same, and if they
fail to do it, then after ten days' notice, the Treasurer is to
sell the State bonds to redeem the notes, after publishing the
fact in three newspapers: and even then, this sale is not to
take place to redeem these notes, unless the Treasurer shall
be satisfied that there is no good and sufficient reason for the
bank refusing to redeem them. Now this committe most
respectfully submit, that the people who hold these notes,
would, if they desired specie for them, rather than suffer
this delay, undergo this trouble, and be at the expense o
coming to Raleigh to the Treasurer's office, would hunt the
note broker, and get rid of a currency that has within itself
the seeds of decay. Is it right that the Legislature should
give its sanction to a corporation, that the experience of
other States teaches us, will finally result so disastrously to
the people.
How will it embarrass the State ? We are engaged in a
system of internal improvement, for the execution of which,
the bonds of the State are annually sold, and will continue
80 to be, for an indefinite future, to aid in their successful
completion : and even now the State is unable to sell her
bonds without a heavy discount to redeem her pledges to

1860-'61.] Document No. 13, 2
its capital stock, and also hold real and personal estate to
the amount of three millions of dollars, and yet, never pay
one dollar of specie except at its own option, to justify this
unheard of expansion, the whole being based on the bonds
of North Carolina. Experience has taught, by sad experi-ment,
many of the Northwestern States in 1836-'3V, that
note holders of banks based simply onState stocks, rely on
a delusive hope in the hour of financial difficulties, and
which results only in loss to them, and embarrassment to
the State.
Why is this? The charter provides, that if the bank re-fuses
to redeem its notes in specie, the holder has to notify
the Treasurer of each failure in his office. Then the Treasur-er,
after the notes have been protested, must notify the cash-ier
or president of the bank to pay the same, and if they
fail to do it, then after ten days' notice, the Treasurer is to
sell the State bonds to redeem the notes, after publishing the
fact in three newspapers: and even then, this sale is not to
take place to redeem these notes, unless the Treasurer shall
be satisfied that there is no good and sufficient reason for the
bank refusing to redeem them. Now this committe most
respectfully submit, that the people who hold these notes,
would, if they desired specie for them, rather than suffer
this delay, undergo this trouble, and be at the expense o
coming to Raleigh to the Treasurer's office, would hunt the
note broker, and get rid of a currency that has within itself
the seeds of decay. Is it right that the Legislature should
give its sanction to a corporation, that the experience of
other States teaches us, will finally result so disastrously to
the people.
How will it embarrass the State ? We are engaged in a
system of internal improvement, for the execution of which,
the bonds of the State are annually sold, and will continue
80 to be, for an indefinite future, to aid in their successful
completion : and even now the State is unable to sell her
bonds without a heavy discount to redeem her pledges to